OLD ORCHARD BEACH — Former town employee Kelly Roy has filed a lawsuit against the town, alleging a hostile work environment.

The suit was filed in late February at York County Superior Court.

Roy was hired in February of 2010 as a full-time office manager for the town’s Public Works Department. Roy states in the suit that in July of 2011, she was asked to take on additional duties and process accounts payable in the town’s finance department; and in September of 2011, she was asked to help process payroll in the finance department.

In December of 2011, Catherine Saltz was hired as the new finance director, and Roy’s duties in the finance department increased, from 4-5 hours a week to 15-20 hours per week, according to court documents.

Then-Town Manager Jack Turcotte told Saltz that Roy was being given too much work in the financial department, and some of the tasks were inappropriate given Roy’s limited financial background, according to the lawsuit.

Bill Robertson, Roy’s boss in public works, complained that Roy’s responsibilities in the financial department were beginning to affect her ability to complete duties in the public works department, according to the lawsuit.

Shortly after Turcotte was replaced by Mark Pearson as town manager in February of 2012, Roy observed violations of purchasing policies by Pearson and Saltz, bills were not being paid on time, 1099 tax statements were not issued properly and the town was not making required contributions to retirement funds, according to the lawsuit.

Roy alleges the town created a hostile work environment, and “a constant threat of termination” after a letter she wrote in February of 2012.

On Feb. 29, 2012, Roy outlined her concerns to a letter to Robertson and gave notice of her resignation from duties in the financial department.

Roy said, according to court documents, that after writing the letter, she was threatened with termination of her job, and her job was temporarily reduced to 35 hours a week. Roy said Saltz urged the town to reduce her hours to 25 a week, which would have taken away her health benefits.

Roy said Pearson forced her to use a time clock when other employees were not required to do so.

Roy is asking for attorneys’ fees and damages.

Amy Sneirson, executive director of the Maine Human Rights Commission, wrote in a May 2013 letter that the commission determined there was reasonable ground to believe that Roy had been unlawfully discriminated against.

The matter failed to be resolved through conciliation, authorizing Roy to file a civil suit.

An audit report from November 2012 by RHR Smith and Company noted “lack of proper reconciliations” in the town’s checking account for the fiscal year ending June 30, 2012, dating back to October 2011. The report also noted lack of proper reconciliation in taxes and liens receivable.

Assistant Town Manager V. Louise Reid said the case was a personnel matter and the town could not comment on it.

— Staff Writer Liz Gotthelf can be contacted at 282-1535, Ext. 325 or egotthelf@journaltribune.com.